Question

All Journals and General Ledger; Trial Balance

The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:

Mar. 1.		Issued Check No. 205 for March rent, $2,450.
2.		Purchased a vehicle on account from McIntyre Sales Co., $26,900.
3.		Purchased office equipment on account from Office Mate Inc., $1,570.
5.		Issued Invoice No. 91 to Ellis Co., $7,000.
6.		Received check for $7,950 from Chavez Co. in payment of invoice.
7.		Issued Invoice No. 92 to Trent Co., $9,840.
9.		Issued Check No. 206 for fuel expense, $820.
10.		Received check for $10,000 from Sajeev Co. in payment of invoice.
10.		Issued Check No. 207 to Office City in payment of $450 invoice.
10.		Issued Check No. 208 to Bastille Co. in payment of $1,890 invoice.
11.		Issued Invoice No. 93 to Jarvis Co., $7,200.
11.		Issued Check No. 209 to Porter Co. in payment of $415 invoice.
12.		Received check for $7,000 from Ellis Co. in payment of March 5 invoice.
13.		Issued Check No. 210 to McIntyre Sales Co. in payment of $26,900 invoice of March 2.
16.		Cash fees earned for March 1–16, $26,800.
16.		Issued Check No. 211 for purchase of a vehicle, $28,500.
17.		Issued Check No. 212 for miscellaneous administrative expense, $4,680.
18.		Purchased maintenance supplies on account from Bastille Co., $2,430.
18.		Received check for rent revenue on office space, $900.
19.		Purchased the following on account from Master Supply Co.: maintenance supplies, $2,640, and office supplies, $1,500.
20.		Issued Check No. 213 in payment of advertising expense, $8,590.
20.		Used maintenance supplies with a cost of $4,400 to repair vehicles.
21.		Purchased office supplies on account from Office City, $990.
24.		Issued Invoice No. 94 to Sajeev Co., $9,200.
25.		Received check for $14,000 from Chavez Co. in payment of invoice.
25.		Issued Invoice No. 95 to Trent Co., $6,300.
26.		Issued Check No. 214 to Office Mate Inc. in payment of $1,570 invoice of March 3.
27.		Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000.
30.		Issued Check No. 216 in payment of driver salaries, $33,300.
31.		Issued Check No. 217 in payment of office salaries, $21,200.
31.		Issued Check No. 218 for office supplies, $600.
31.		Cash fees earned for March 17–31, $29,400.

Required:

1. The following accounts are setup in the general ledger as of March 1. Using the information below, enter the balances for each account.

11	Cash	$65,200		32	J. Wu, Drawing	-
12	Accounts Receivable	31,950		41	Fees Earned	-
14	Maintenance Supplies	7,240		42	Rent Revenue	-
15	Office Supplies	3,690		51	Driver Salaries Expense	-
16	Office Equipment	17,300		52	Maintenance Supplies Expense	-
17	Accum. Depr.—Office Equip.	4,250		53	Fuel Expense	-
18	Vehicles	62,400		61	Office Salaries Expense	-
19	Accum. Depr.—Vehicles	17,800		62	Rent Expense	-
21	Accounts Payable	2,755		63	Advertising Expense	-
31	J. Wu, Capital	162,975		64	Miscellaneous Administrative Exp.	-

2. Journalize the transactions for March using the required journal(s). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

2a. Journalize the transactions for March using the purchases journal (with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If no entry is required, type "No entry required" and leave the amount boxes blank.

If an amount box does not require an entry, leave it blank.

PURCHASES JOURNAL								PAGE 37
Date	Account Credited	Post. Ref.	Accounts Payable Cr.	Maintenance Supplies Dr.	Office Supplies Dr.	Other Accounts Dr.	Post. Ref.	Amount
		✔
		✔
		✔
		✔
		✔
			(21)	(14)	(15)			(✔)

2b. Journalize the transactions for March using the cash receipts journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If an amount box does not require an entry, leave it blank.

CASH RECEIPTS JOURNAL					PAGE 31
Date	Account Credited	Post. Ref.	Other Accounts Cr.	Accounts Receivable Cr.	Cash Dr.
		✔
		✔
		✔
		✔
			(✔)	(12)	(11)

2c. Journalize the transactions for March using the single-column revenue journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

REVENUE JOURNAL				PAGE 35
Date	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
			✔
			✔
			✔
			✔
			✔
				(41) (12)

2d. Journalize the transactions for March using the cash payments journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If an amount box does not require an entry, leave it blank.

CASH PAYMENTS JOURNAL						PAGE 34
Date	Ck. No.	Account Debited	Post. Ref.	Other Accounts Dr.	Accounts Payable Dr.	Cash Cr.
			✔
			✔
			✔
			✔
			✔
				(✔)	(21)	(11)

2e. Journalize the transactions for March using the two-column general journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If an amount box does not require an entry, leave it blank.

JOURNAL				PAGE 1
Date	Description	Post. Ref.	Debit	Credit

3. Post the appropriate individual entries to the general ledger.

4. Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances.

If an amount box does not require an entry, leave it blank.

GENERAL LEDGER
					Balance
Date	Item	Post. Ref.	Debit	Credit	Dr.	Cr.
Account: Cash #11
Mar. 1	Balance	✔
Account: Accounts Receivable #12
Mar. 1	Balance	✔
Account: Maintenance Supplies #14
Mar. 1	Balance	✔
Account: Office Supplies #15
Mar. 1	Balance	✔
Account: Office Equipment #16
Mar. 1	Balance	✔
Account: Accumulated Depreciation - Office Equipment #17
Mar. 1	Balance	✔
Account: Vehicles #18
Mar. 1	Balance	✔
Account: Accumulated Depreciation - Vehicles #19
Mar. 1	Balance	✔
Account: Accounts Payable #21
Mar. 1	Balance	✔
Account: J. Wu, Capital #31
Mar. 1	Balance	✔
Account: J. Wu, Drawing #32
Account: Fees Earned #41
Account: Rent Revenue #42
Account: Driver Salaries Expense #51
Account: Maintenance Supplies Expense #52
Account: Fuel Expense #53
Account: Office Salaries Expense #61
Account: Rent Expense #62
Mar. 1
Account: Advertising Expense #63
Account: Miscellaneous Administrative Expense #64

5. Prepare a trial balance.

If an amount box does not require an entry, leave it blank.

AM EXPRESS COMPANY Unadjusted Trial Balance March 31
	Debit Balances	Credit Balances
Cash
Accounts Receivable
Maintenance Supplies
Office Supplies
Office Equipment
Accumulated Depreciation - Office Equipment
Vehicles
Accumulated Depreciation - Vehicles
Accounts Payable
J. Wu, Capital
J. Wu, Drawing
Fees Earned
Rent Revenue
Driver Salaries Expense
Maintenance Supplies Expense
Fuel Expense
Office Salaries Expense
Rent Expense
Advertising Expense
Miscellaneous Administrative Expense

Answer 1

			General Ledger
			AM Express Company
			Cash A/c
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar	Balance				$                65,200.00
1-Mar	Rent			$                                2,450.00	$                62,750.00
6-Mar	Acounts Receivable		$                       7,950.00		$                70,700.00
9-Mar	Fuel Expenses			$                                    820.00	$                69,880.00
10-Mar	Accounts Receivable		$                    10,000.00		$                79,880.00
10-Mar	Accounts Payable			$                                    450.00	$                79,430.00
10-Mar	Accounts Payable			$                                1,890.00	$                77,540.00
11-Mar	Accounts Payable			$                                    415.00	$                77,125.00
12-Mar	Accounts Receivable		$                       7,000.00		$                84,125.00
13-Mar	Accounts Payable			$                              26,900.00	$                57,225.00
16-Mar	Vehicle			$                              28,500.00	$                28,725.00
16-Mar	Fees Earned		$                    26,800.00		$                55,525.00
17-Mar	Misc Expenses			$                                4,680.00	$                50,845.00
18-Mar	Rent Revenue		$                          900.00		$                51,745.00
20-Mar	Advertisement			$                                8,590.00	$                43,155.00
25-Mar	Accounts Receivable		$                    14,000.00		$                57,155.00
26-Mar	Accounts Payable			$                                1,570.00	$                55,585.00
27-Mar	Drawings			$                                4,000.00	$                51,585.00
30-Mar	Driver Salaries			$                              33,300.00	$                18,285.00
31-Mar	Fees Earned		$                    29,400.00		$                47,685.00
31-Mar	Office Salaries			$                              21,200.00	$                26,485.00
31-Mar	Office Supplies			$                                    600.00	$                25,885.00
	Total		$                    96,050.00	$                            135,365.00
			Accounts receivable
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar	Balance				$                31,950.00
5-Mar			$                       7,000.00		$                38,950.00
6-Mar				$                                7,950.00	$                31,000.00
7-Mar			$                       9,840.00		$                40,840.00
10-Mar				$                              10,000.00	$                30,840.00
11-Mar			$                       7,200.00		$                38,040.00
12-Mar				$                                7,000.00	$                31,040.00
24-Mar			$                       9,200.00		$                40,240.00
25-Mar				$                              14,000.00	$                26,240.00
25-Mar			$                       6,300.00		$                32,540.00
			$                    33,240.00	$                              38,950.00
			Maintenance Supplies
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar	Balance				$                   7,240.00
18-Mar			$                       2,430.00		$                   9,670.00
19-Mar			$                       2,640.00		$                12,310.00
20-Mar				$                                4,400.00	$                   7,910.00
			Office Supplies
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar	Balance				$                   3,690.00
19-Mar			$                       1,500.00		$                   5,190.00
21-Mar			$                          990.00		$                   6,180.00
31-Mar			$                          600.00		$                   6,780.00
			Office Equipment
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar	Balance				$                17,300.00
3-Mar			$                       1,570.00		$                18,870.00
			Vehicle
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar	Balance				$                62,400.00
2-Mar			$                    26,900.00		$                89,300.00
16-Mar			$                    28,500.00		$              117,800.00
			Fuel expenses
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar	Balance
9-Mar			$                          820.00		$                      820.00
			Accounts Payable
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar						$                   2,755.00
2-Mar				$                              26,900.00		$                 29,655.00
3-Mar				$                                1,570.00		$                 31,225.00
10-Mar					$                      450.00	$                 30,775.00
10-Mar					$                   1,890.00	$                 28,885.00
11-Mar					$                      415.00	$                 28,470.00
13-Mar					$                26,900.00	$                   1,570.00
18-Mar				$                                2,430.00		$                   4,000.00
21-Mar				$                                    990.00		$                   4,990.00
26-Mar					$                   1,570.00	$                   3,420.00
			Accumulated Depreciation-Office Equipment
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
31-Mar						$                   4,250.00
			Accumulated Depreciation-Vehicle
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
31-Mar						$                 17,800.00
			S.Holmes Capital
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
31-Dec						$               162,975.00
			S.Holmes Drawings
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
27-Mar			$                       4,000.00			$                   4,000.00
			Fees Earned
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
16-Mar				$                              26,800.00		$                 26,800.00
31-Mar				$                              38,950.00		$                 65,750.00
31-Mar				$                              29,400.00		$                 95,150.00
			Driver salary Exenses
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
30-Mar			$                    33,300.00		$                33,300.00
			Office Salaries
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
31-Mar			$                    21,200.00		$                21,200.00
			Maintenance supplies Expenses
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
20-Mar			$                       4,400.00		$                   4,400.00
			Rent Expenses
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
1-Mar			$                       2,450.00		$                   2,450.00
			Advertisement Expenses
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
20-Mar			$                       8,590.00		$                   8,590.00
			Miscellaneous Administrative Expenses
					Balance
Date	Item	Ref No.	Debit	Credit	Debit	Credit
17-Mar			$                       4,680.00		$                   4,680.00
			AM Express Company
			Purchase Journal
Date	Amount Credited	Post Ref.	Accounts Payable (Cr)	Maintenance Supplies(Dr)	Office supplies (Dr)	Other Accounts (Dr)	Post Ref.	Amount
2-Mar	Mclntyre Sales Co.		$                    26,900.00			$                 26,900.00
3-Mar	Office Mate Inc.		$                       1,570.00			$                   1,570.00
18-Mar	Bastille Co.		$                       2,430.00	$                                2,430.00
19-Mar	Maste Supply co.		$                       4,140.00	$                                2,640.00	$                   1,500.00
21-Mar	Office City		$                          990.00		$                      990.00
31-Mar			$                    36,030.00	$                                5,070.00	$                   2,490.00	$                 28,470.00
		AM EXPress Company